Wave vs Xero

Detailed comparison to help you choose the right tool for your needs

W

Wave

Free accounting and invoicing for small businesses

4.4
Editorial Rating
X

Xero

Beautiful cloud accounting for small business

4.3
Editorial Rating

Quick Comparison

Rating

4.4
vs
4.3

Starting Price

Free
vs
$29

Pricing Model

free
vs
paid
Feature
Wave
Xero
Invoicing
Accounting
Receipt Scanning
Financial Reporting
Payment Processing
Payroll
Bank Reconciliation
Expense Claims
Multi-Currency
Project Tracking

Wave Pros

  • Core accounting and invoicing are completely free
  • No client or invoice limits
  • Clean and simple interface
  • Good for freelancers and solopreneurs
  • Receipt scanning via mobile app
  • No credit card required to start

Wave Cons

  • Limited integrations compared to competitors
  • No inventory management
  • Payroll is a paid add-on
  • Payment processing fees are standard not discounted
  • No project tracking or time tracking
  • Reporting is fairly basic

Xero Pros

  • Unlimited users on all plans
  • Clean and intuitive interface
  • Over 1000 third-party integrations
  • Strong multi-currency support
  • Excellent bank feed connections globally
  • Real-time collaboration with accountants

Xero Cons

  • Invoice limits on the Starter plan
  • Payroll is an add-on in most regions
  • Reporting can feel limited vs QuickBooks
  • No built-in time tracking
  • Inventory management is basic
  • US market features lag behind other regions

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